Reference no: EM132188983

Consider the below two scenarios and analyze the relationship between enterprise and project risk management concepts and their associated impact on the overarching goals of an organization.

Scenario 1. You work for a company that strives to be first to market with new products. As Chief Risk Officer (CRO), you have assembled a risk team to assess risk on the release on a new product. The risk team has identified 62 risks associated with the product release. They have also determined what would trigger the risks and have ranked them on a risk rating matrix, tested their assumptions, and measured the precision of the data used. The team is wrapping up the risk assessment, preparing their final reports to leadership, and has been given the go-ahead for production to start. No one notices that you have not included the participation of the key stakeholders in the risk assessment.

Scenario 2. You work for a company that feels it has a social responsibility to its customer base. You have been appointed as the new project risk manager of an unusually large and complex project. Because this project is business-critical and highly visible, the executive management staff has told you to analyze the project’s risks that may impact the organization’s social responsibility to the consumer and to prepare mitigation strategies for them as soon as possible. The organization has adopted standardized risk management procedures, but they are seldom followed, and they have a history of handling risks poorly. The project’s first milestone is in one week.

Question: Identify which project will have the greatest negative impact on the organization. Clearly support the answer with reasons why the scenario chosen is the worst situation.